Canada Goose's China revenue surges 32%, but customers are losing

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Canada Goose's China revenue surges 32%, but customers are losing

CLS

2026.11.10 17:57

· From Beijing

Full text 3129 words

Text | CLS

In November 2026, Canada Goose announced its results for the second quarter of fiscal year 2027. Global revenue was CAD 274 million, a year-on-year increase of 5.9%.

Even more fiercely, the Greater China region took in 68.5 million Canadian dollars, a year-on-year increase of 32.5%, and the growth rate ranked first among all regions.

Canada Goose is also sold out on the Sam’s Club mini program. The men’s Parker down jacket is 9,999 yuan, the women’s version is 10,999 yuan, and some down vests are only 3,399 yuan. Comparing the brand's official channels, an Expedition expedition parka is priced at 16,300 yuan, and Sam's price is four to five thousand yuan cheaper. Not long after they were put on the shelves, many products showed "restocking".

In fact, not all foreign outdoor brands are so popular in China. In the third quarter of 2026, Columbia's revenue in China achieved low double-digit growth; the quarterly financial report of North Face parent company VF Group as of late September showed that revenue in the Asia-Pacific region fell by 7%.

In the same outdoor clothing market, although Canada Goose's revenue is still growing, it has not escaped the pressure of passenger flow. When consumers can compare across different channels and brands, how can a high-priced jacket maintain its price?

Greater China revenue surges 32%

Canada Goose is a hot seller in China, and there are actually already clues.

In the past four quarters, Canada Goose's Greater China revenue growth rates were 13.1%, 24.2%, 44.2% and 32.5% respectively, an increase of more than 30% for two consecutive quarters. In the first fiscal quarter that ended this summer, Greater China's revenue was CAD 37.5 million, a year-on-year increase of 44.2%, making it the company's fastest growing single region. In the latest quarter, U.S. revenue increased by 10.4%, while combined revenue in Europe, the Middle East, Africa and Latin America fell by 14%.

Canada Goose Greater China is not only growing rapidly, but its contribution to global growth is also outstanding. In the latest quarter, Greater China revenue increased by approximately CAD 16.8 million year-on-year, exceeding the company's net increase in global revenue of approximately CAD 15.2 million.

According to the company's financial report released on November 5, store conversion rates, single-item revenue and customer orders increased simultaneously in the latest quarter; the company also said that indicators such as brand awareness, desire and purchase intention in the mainland Chinese market continue to improve.

Carrie Baker, president of brand and commercial business, mentioned in the conference call that day that the purchase conversion rate of Asia-Pacific stores has achieved a double-digit increase, sales during the National Day Golden Week were strong, and remaining customers are more willing to spend money.

But revenue growth does not mean that offline store business is getting better. This quarter, Canada Goose's global direct-operated same-store sales fell 7.5% year-on-year. At the earnings conference call on November 5, Chief Financial Officer Neil Bowden said that direct-operated same-store sales in the Asia-Pacific region fell by approximately 4%, mainly affected by reduced passenger flow, especially in mainland China.

In fact, Canada Goose's growth is increasingly dependent on multiple channels. This quarter, Canada Goose's global direct sales revenue increased by 2.7%, and wholesale revenue increased by 4.6%. The growth of direct sales mainly relies on newly opened stores and e-commerce, while the performance of old stores is weak. Part of the growth in the Asia-Pacific region comes from the group's procurement business, including Hainan Duty Free and other wholesale businesses, as well as the Korean market.

In other words, customers may not necessarily have walked into a brand store, but purchased goods through e-commerce, duty-free shops, and wholesalers.

The profit side is also worth paying attention to. Canada Goose's gross profit margin this quarter was 66.8%, an increase of 2.8% year-on-year. But selling and administrative expenses also increased 11.6% to 204.5 million Canadian dollars. In the end, the company's operating loss was 21.6 million Canadian dollars, an increase of 4 million Canadian dollars from the same period last year.

Revenue is rising, passenger flow is falling, and profits are under pressure. These three signals appear at the same time, indicating that the problems Canada Goose encounters in China cannot be completely solved by adjusting channels and product structure alone.

After the price increase, what else does the brand have to answer?

Canada Goose has also implemented price adjustments this year. During the earnings call on July 30, Chief Financial Officer Neil Bowden said that the overall price adjustment impact at the beginning of the quarter was about mid-single digits, which is roughly equivalent to about 5%.

Canada Goose quill margins improved in the quarter ended Sept. 27. Management attributed this to product mix, price increases, sourcing and production efficiency improvements, and lower freight and customs costs. In other words, price increases are one of the factors that affect profits, but not all.

The question is whether the price can continue to be accepted by consumers ultimately depends on sales.

During a conference call on November 5, Carrie Baker, Canada Goose’s president of brand and commercial business, said that the company had not observed any obvious price conflicts, and consumers could feel the changes in the value of new products and brand style. However, in the same quarter, global direct-operated same-store sales declined, and store traffic in mainland China was also under pressure.

The existence of these two phenomena at the same time shows that the remaining consumers are willing to buy, but the number of customers entering the store has not increased. For high-end consumer goods, raising prices may increase unit revenue, but it cannot automatically bring customer flow; new products and marketing can help attract customers, but corresponding investment is required.

Among channels, the same brand also has a more obvious price reference.

Among the Canada Goose products on the shelves of Sam Global Shopping on November 8, the women’s parka is priced at 10,999 yuan; the Expedition parka on sale at the brand’s official flagship store on Tmall has a “Double 11” subsidy price of 15,800 yuan and a list price of 16,300 yuan.

It is also a parka. According to the Double 11 subsidized price, the price difference between the two sides is about 4,800 yuan. For consumers, this means that it is possible to buy Canada Goose for less money without going through official channels.

The more sales channels there are, the harder it is for brands to keep prices consistent. Official channels must maintain their own prices and services, while other channels may attract consumers with different prices and after-sales conditions. Brands not only hope to expand sales, but also face consumers' price comparisons.

Canada Goose still has growth expectations for the full year. In November 2026, the company expected revenue to achieve low-single-digit growth in fiscal year 2027, with adjusted operating profit margins reaching 11% to 12%; however, it also expected consumer demand to weaken compared with the previous fiscal year and passenger flow in some markets to be weak.

The price difference between channels is only one side of the pressure. While Canada Goose is competing for customers, other outdoor brands are competing for the same consumers.

As the north encounters cold weather, Colombia’s income increases

The real pressure for Canada Goose in the Chinese market comes from a high-end outdoor market that is being re-segmented. Professional outdoor, urban commuting, lightweight functions, different brands are competing for the same group of people's wardrobes.

Compared with Canada Goose, Columbia's market positioning emphasizes functionality and relative cost-effectiveness.

In the quarter ended September 27, Columbia's net sales increased 2% year-on-year to US$963 million, and operating profit increased 62.6% year-on-year to US$110 million. Among them, net sales in the Chinese market increased by nearly 20%, achieving low double-digit growth, which was faster than the mid-single-digit growth in the previous quarter. However, part of this growth comes from wholesale and the other part comes from e-commerce, and store customer flow is still worrying.

The gap in gross profit margin is even more obvious. In the same financial reporting season, Colombia’s gross profit margin was 49.8%, and Canada Goose’s was 66.8%. The former relies on functions and prices to stay in the market, while the latter relies on brand value to make profits. The higher the pricing stands, the harder it will be to defend the price system.

The situation faced by Weifu is different. This quarter, North Face’s parent company VF’s global revenue was US$2.695 billion, down 4%; Asia Pacific fell 7%.

In terms of brands, Timberland fell by 21% in Asia Pacific, Vans fell by 18%, and North Face fell by 4%. North Face grew 8% in the Americas and 3% in Europe, the Middle East and Africa, with only a decline in Asia Pacific.

The North's problems in China are not limited to this quarter. In the past ten years, Beifang down jackets have been seen all over the streets in China, but now they are no longer popular.

It is generally believed in the industry that Arc'teryx, Descente and other brands have taken the lead in occupying the position of high-end professional outdoor products, while Beifang is in an awkward position: not tough enough compared to professional, not new enough compared to the trend, and not cheap enough compared to the price.

Consumer needs are also changing. In September 2026, Xie Lin, President of Canada Goose China, mentioned in an interview with China Business News that Asian markets, especially domestic consumers, prefer lightweight jackets, and the brand plans to focus on expanding lightweight and comfortable down series in the winter of that year.

From heavy parkas to light jackets, from professional outdoor to urban commuting, different brands are competing for similar wearing scenes. Canada Goose not only wants consumers to recognize the high price of down jackets, but also wants them to be willing to buy new products such as raincoats and windbreakers.

The high revenue growth rate of Canada Goose in Greater China shows that there is still demand for Canada Goose in this market. But then, the real test is not just to keep the price high, but to make more consumers willing to walk into the store and pay for the product.

References:

"Big deal!" Canada Goose suddenly sold out at Sam’s, nearly 5,000 yuan cheaper than the official price”, Daily Economic News;

"From "cold-proof single product" to "all-season" narrative: How can Canada Goose create "deterministic growth" in the Q1 off-season? 》, Caixin;

"The higher the price, the more people buy it, and Canada Goose's performance in China increased by 32%", Guangliu Business;

"Greater China revenue increased by 44%, Canada Goose opened its latest concept store in Nanjing", China Business News;

"The off-season sales of Canada Goose in China increased by 30%. Why did the sales in the north fall instead of rising?" 》, Southern Metropolis Daily;

"Canada Goose's revenue in the second quarter of fiscal year 2027 increased by 5.9% year-on-year, and revenue in Greater China increased by 32.5% year-on-year", Caijing.com;

Canada Goose's second quarter financial report for fiscal year 2027, Beijing Business Daily.

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